Any company that participates in affiliate programs is always running the risk of putting their brand in the hands of other marketers. And, while these programs can be huge money makers for brands, they must diligently monitor compliance in order to protect themselves legally.
This is why brands like Kayak, Reebok, and Alaska Airlines are turning to BrandVerity to protect their brand and mitigate risk using their automated monitoring tools. Their platform provides monitoring for paid search and helps ensure brand and marketing compliance across affiliates for some of the world’s biggest brands.
How much is BrandVerity doing in ARR?
BrandVerity is a pure-play SaaS company that offers monthly subscriptions to a variety of software. Their flagship product, Paid Search Monitoring, currently makes up 80% of their total revenue with the average customer paying them $1k per month for access.
According to CEO David Naffziger, BrandVerity now serves 400 total paying customers and just crossed $6M in ARR. The company, founded back in 2008, has been growing 20% to 30% year over year.
What is BrandVerity’s churn?
In order to reduce overall churn, Naffziger noted that the company is attempting to move upmarket at this point in time. Today, BrandVerity is exhibiting approximately 20% gross logo churn annually with net revenue retention between 90% and 100% each year.
In terms of customer acquisition, the company is spending $10-12k to acquire a new customer and is receiving payback within 12 months. Word of mouth is the biggest driver of new business at this point in time, but Naffziger explained that a large investment will be made in building out sales and marketing operations in the near future.
BrandVerity assumes a minimum lifetime value of $50k over 5 years.
How much has BrandVerity raised?
BrandVerity has been able to grow to scale solely by bootstrapping. Coming from two venture backed startups previously, Naffziger aimed to build out his own business without raising capital and has had success thus far. Going forward, the company is not looking to raise capital right now, but is not opposed to the idea down the line.
BrandVerity’s team of 35 full-time employees is based in both Seattle and London and is gearing up to grow their sales and marketing team in 2019. Make sure to follow as they continue to grow their product portfolio and expand as a bootstrapped entity.